Deflation And The COLA

The cost of living went down by a record 1% last month. This was too late to figure into this year's cost of living adjustment (COLA) for Social Security benefits and will be factored into next year's COLA computation. It appears that the United States is heading rapidly into a major recession. It is entirely possible that the cost of living will have declined over the year time leading up to next year's COLA computation. This raises an interesting question: Could there be a negative COLA next year that would reduce Social Security benefits?

The answer appears to be no. The statute is 42 U.S.C. §415(i). It talks at considerable length about how to compute an increase in Social Security benefits due to inflation. The word "increase" appears over and over in the statute. I doubt that one could reasonable interpret the statute to allow computation of a negative COLA for Social Security benefits. Still, this appears to me that Social Security should request an interpretation on this from the new Attorney General.

Happy Thanksgiving!

De Soto And Chatel Both Responsible For DSI, Both Going To FEI

Lisa de Soto and Mary Chatel both bear a heavy responsibility for the disastrous Disability Service Improvement (DSI) scheme. DSI was former Commissioner Barnhart's baby and she bears the most responsibility, but de Soto and Chatel were to blame, as well, since they were heavilyinvolved in planning and promoting DSI. Although Martin Gerry, who was also responsible for DSI, was abruptly fired after the current Commissioner took over, de Soto and Chatel, to my surprise, stayed at Social Security. De Soto even remained in a high position.

Both are now leaving Social Security to go to the Federal Executive Institute.

E-Mail From Astrue On Staff Changes

DATE: November 25, 2008

TO: Senior Staff

FROM: Michael J. Astrue /s/
Commissioner

SUBJECT: Executive Personnel Assignments - INFORMATION

Under Lisa deSoto’s leadership for the past three years, the Office of Disability Adjudication and Review has met ambitious goals and made tremendous business process improvements that have set the stage for eliminating the disability backlog. Lisa has accepted an offer from the Federal Executive Institute (FEI) to teach and share her leadership skills with new and aspiring executives from across government for the next two years. While we will miss Lisa’s passion and vision, it is a unique opportunity for her to reflect, learn, and then return to the agency with a broadened perspective. Lisa will begin her Executive-in-Residency with the FEI on January 16, 2009.

Upon Lisa’s departure, David Foster will become the Deputy Commissioner for Disability Adjudication and Review.

On November 24, Jim Winn will become Chief of Staff and Jo Tittel will become Deputy Chief of Staff. LaTina Greene, who has been serving as the Chief of Staff’s Special Assistant, will move to the Office of Central Operations as Deputy Associate Commissioner on January 16, 2009.

In the Office of Retirement and Disability Policy, effective immediately, JoEllen Felice is the Associate Commissioner for Income Security Programs, a capacity in which she has been acting since July 2008.

In the Office of Systems, Pete Malinauskas, Associate Commissioner for Retirement and Survivors Insurance Systems, is retiring on January 3, 2009. Bill Zielinski, currently the Deputy Associate Commissioner for Applications and Supplemental Security Income Systems, will become Associate Commissioner upon Pete’s retirement. The Deputy Associate Commissioner position Bill vacates will continue to be available as an SES Candidate Development Program assignment.

In the Office of Telecommunications and Systems Operations, Gary Augustine has moved from Assistant Associate Commissioner for Enterprise IT Operations and Security to the Assistant Associate Commissioner for Infrastructure Architecture and Security. Marti Eckert, formerly the Deputy Associate Commissioner for Systems Electronic Services, is now the Assistant Associate Commissioner for Enterprise IT Operations and Security. The Deputy Associate Commissioner for Systems Electronic Services will be available as an SES Candidate Development Program assignment.

In the Office of Budget, Finance and Management’s Office of Facilities Management, Betsy Bake has been appointed as Deputy Associate Commissioner for Facilities Management following Nancy McCullough’s retirement earlier this month.

In the Office of Human Resources, Assistant Deputy Commissioner, Feli Sola-Carter, has announced that she will retire at the end of January 2009. Upon Feli’s retirement, Nancy Berryhill, currently the Denver Regional Commissioner, will serve as the Acting Assistant Deputy Commissioner. Martha Lambie, Deputy Regional Commissioner in Denver, then will serve as the Acting Regional Commissioner.

In the Office of the General Counsel, Kristi Schmidt has been appointed as the Regional Chief Counsel in Kansas City. Gwen Jones Kelley has been appointed as the Deputy Associate General Counsel for Program Law. Gwen will continue to serve as the Acting Associate General Counsel for Program Law.

Mary Chatel, currently the Senior Advisor for Program Outreach in the Office of Retirement and Disability Policy, will also begin an assignment with the Federal Executive Institute on December 1, 2008.

Lastly, on January 20, 2009, Tom Hughes, Chief Information Officer, and Mike Korbey, Senior Advisor to the Deputy Commissioner, will depart the agency.

Over the last 6 years, Tom has garnered the agency high scores in security, and he has been a catalyst in developing an IT vision for the 21st century. Greg Pace will serve as the Acting Chief Information Officer upon Tom’s departure.

In addition, during his tenure with the agency, Mike has been an effective advisor to the Deputy Commissioner. I would like to thank Tom and Mike for their contributions to the agency and for their commitment to public service.

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Schedule C Positions At Social Security

Does anyone have a list of the Schedule C positions at Social Security? These are policy-determining positions that are subject to change when a new administration takes office. Advance approval from the White House is required to appoint someone to a Schedule C position.

De Soto Out?

There is an anonymous report that Lisa de Soto, Social Security's Deputy Commissioner for the Office of Disability Adjudication and Review, is leaving her position to teach at the Federal Executive Institute. David Foster is to replace her. Her last day at Social Security is January 16, four days before Barack Obama's inauguration.

Update: Here is some confirmation that de Soto is out. Apparently, there were a number of other personnel changes as well. Here is some information on David Foster:

Mr. Foster has held high-level positions in the federal government, having served in various capacities at the White House, the Department of Health and Human Services in Washington, DC and the United States Attorney's Office in Alexandria, Virginia. In the private sector, Mr. Foster has worked extensively in the health care field as the head of government relations for biotechnology firms and as counsel for the National Leadership Coalition on Health Care. He also has chaired committees for the American Bar Association, the Federalist Society and the Biotechnology Industry Organization.

Mr. Foster is a magna cum laude graduate of Bowdoin College and received his J.D. from Northeastern University.

Federalist Society. That's reassuring!

Problem Solver Gets More Results! Potemkin Lives!

From television station WSPA in Spartanburg, SC:

When you wait years for the government to approve your disability insurance request there’s no doubt you need that money. One woman who called us said the Social Security Administration took months to send her more than $50,000 in back pay. Our Dianne Derby got the money for her in no time. It’s a 7 On Your Side Problem Solver. ...

She was approved for disability insurance earlier this year but can’t get the Social Security Administration to send her the more than $50,000 in back pay they granted. It’s money she needs after dipping into her retirement for 3 years while waiting for a final answer from the SSA.

“I called and they kept saying ‘Oh it just takes a while’,“ said Ogburn.

Our calls to SSA’s regional headquarters in Atlanta brought forth an apology to Ogburn from spokesperson Patti Patterson and an admission they should have moved faster. “We do try to pay people as quickly and timely as possible,“ said Patterson. “Unfortunately, on some occasions things don’t get processed as quickly as they should. This is an example of that.“

Within days Ms. Ogburn was more than $50,000 richer.

I think I will describe this sort of thing as a "Potemkin", in honor of Grigori Potemkin, a minister to Catherine the Great of Russia. Potemkin allegedly had hollow facades of buildings constructed along the route that the Empress was taking in a newly conquered area of the Crimea to impress her with the value of area.